UK fashion retailer Superdry has secured GBP70m (US$91m) in financing as it continues to reel from the impact of coronavirus on its sales.
The company has entered a financing facility, which it says gives it the necessary flexibility and liquidity going forward.
The Asset-Backed Lending facility is valid until January 2023 and replaces the one due to expire in January 2022.
The news comes as Superdry says while first-quarter trading has been better than initial expectations, disruption from Covid-19 continues to materially impact year-on-year performance.
Total group revenue for the period is down 24.1% year-on-year, largely due to the impact of store closures as a result of Covid-19.
Gradual reopening began at the start of FY21 and while approximately 95% of its store estate is open, store revenues are down 58.1% year-on-year, equivalent to a 32.3% like-for-like decline.
E-commerce has continued to perform well, however, up 93.2% in the first quarter, having normalised in recent weeks as stores re-open.
CEO Julian Dunkerton said: “The actions we have taken to date have greatly strengthened our cash position, which together with our new ABL Facility, give us the flexibility to execute our current plans and to secure our recovery.
“Together, we are making our way through this unprecedented period, and I’m confident we can reset the brand and deliver on our transformation plans.”
Earlier this year, the group ended its four-year joint venture with Chinese partner Trendy International and said it was taking back full control of its China business.
Superdry anticipates that about GBP6m (US$7.5m) in total, of which GBP3m was recognised at HY20, will be written off in its FY20 accounts as a result. The company is not expecting to incur further costs of closure or need to inject additional material cash to support the wind-up of operations.
In its fourth-quarter, Superdry saw sales slump 36.9% to GBP118.5m, while full-year sales came in at GBP705.5m (US$761.7m) versus GBP871.7m a year earlier.
The company expects to publish its full year results in mid-September.